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Lowe’s earnings: $1.31 per share, vs. expected EPS of $1.42

An employee helps a customer shop for a sander at a Lowe's home improvement store in Chicago.
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An employee helps a customer shop for a sander at a Lowe's home improvement store in Chicago.

Lowe's on Wednesday reported quarterly earnings and revenue that missed analysts' expectations, and lowered its full-year guidance.

Shares of Lowe's fell 5 percent in premarket trading following the announcement. Share prices had been down 6 percent. (Get the latest quote here.)

The retail home improvement company reported fiscal second-quarter earnings of $1.31 per share on $18.26 billion in revenue.

Analysts had expected the retailer to report earnings of about $1.42 a share on $18.44 billion in revenue, according to a consensus estimate from Thomson Reuters.

Lowe's chief Robert Niblock said the home improvement retailer delivered solid results for the first half of the year, in line with its expectations.

"We believe we are well positioned to capitalize on a favorable macroeconomic backdrop for home improvement in the second half of this year as we continue to execute on our strategic priorities to provide better omni-channel experiences, deepen our relationships with professional customers, and drive productivity and profitability," he said in a statement.

Sales at Lowe's stores open more than 13 months rose 2 percent, below the 4.1 percent growth expected by analysts polled by research firm Consensus Metrix.

The company also updated its full-year outlook to reflect its acquisition of Canadian retail company Rona, which was completed in May.

Lowe's expects to add approximately 45 home improvement and hardware stores this fiscal year.

Lowe's expects diluted earnings per share of approximately $4.06 for the fiscal year ending Feb. 3, 2017. Lowe's previously expected earnings of about $4.11 a share.

Mike Lasser, a UBS hardline retail analyst, told CNBC's "Squawk on the Street" that Lowe's underperformed because it is more levered to the seasonal categories such as lawn and garden.

"It out performed in the first quarter on that," he said "and most likely under performed in the second quarter — so it's really a weather issue."

Additionally, he said over the long run retail company Home Depot and Lowe's are going to trend very similar to one another.

Earlier this month, a research analyst at Stifel Nicolaus resumed coverage on shares of Lowe's, setting a buy rating and $100 price target.

"We believe we are only in the middle of a recovery in home remodeling projects," analyst John Baugh said in the report, "and Lowe's is poised to take advantage of this opportunity."

The firm also resumed coverage of Home Depot with a buy rating and $157 price target. The retail company reported earnings and revenue Tuesday that were roughly in line with Wall Street's estimates.

Reuters contributed to this report.